Summary
General Electric (GE) reported flat total revenues of $17.0 billion for the first quarter of 2022, largely driven by a robust performance in its Aviation segment, which was offset by declines in Power and Renewable Energy. Despite stable revenues, the company incurred a net loss attributable to GE common shareholders of $(1.1) billion, or $(0.99) per share. This loss was significantly impacted by several one-time charges, including an $0.8 billion impairment charge related to the planned sale of a portion of its Steam Power business, and $0.2 billion in charges stemming from the conflict in Russia and Ukraine. Operationally, the Aviation segment showed strong growth, with revenues up 12% year-over-year, reflecting the ongoing recovery in commercial air travel. Conversely, Renewable Energy and Power segments experienced revenue declines, citing supply chain challenges, inflation, and market uncertainties. The company's outlook remains focused on its strategic plan to split into three independent companies, with continued efforts to navigate supply chain pressures and global economic headwinds. Free Cash Flow (FCF) usage improved year-over-year to $(0.9) billion from $(3.4) billion, indicating progress in cash generation despite the operational challenges.
Financial Highlights
46 data points| Revenue | $12.68B |
| Cost of Revenue | $9.77B |
| Gross Profit | $2.90B |
| R&D Expenses | $403.00M |
| SG&A Expenses | $2.73B |
| Operating Expenses | $13.90B |
| Operating Income | -$1.22B |
| Net Income | -$1.14B |
| EPS (Basic) | $-1.08 |
| EPS (Diluted) | $-1.08 |
| Shares Outstanding (Basic) | 1.10B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Total revenues remained flat at $17.0 billion, with Aviation segment revenues increasing by 12% driven by commercial market recovery, while Power and Renewable Energy saw declines.
- 2The company reported a net loss attributable to GE common shareholders of $(1.1) billion, or $(0.99) per diluted share, compared to a loss of $(2.87) billion, or $(2.61) per diluted share, in the prior year's quarter.
- 3Significant one-time charges impacted the quarter, including an $0.8 billion Steam Power asset impairment, $0.2 billion in Russia/Ukraine conflict charges, and a $0.6 billion net loss on equity securities.
- 4Free Cash Flow (FCF) usage improved year-over-year, decreasing to $(0.9) billion from $(3.4) billion, driven by a reduction in cash collateral paid and improved other operating activities.
- 5Remaining Performance Obligations (RPO) increased slightly to $240.7 billion, with the Aviation segment seeing the largest increase, indicating a strong future revenue pipeline.
- 6GE continues to progress its plan to split into three independent companies, with the Healthcare business spin-off and the combined Renewable Energy, Power, and Digital businesses remaining key strategic priorities.
- 7Inflationary pressures and supply chain disruptions are noted as significant challenges impacting revenue conversion and profit margins across multiple segments, particularly Renewable Energy and Healthcare.